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The Self Reliant India (SRI) Fund scheme, which supports MSMEs with equity infusion, has invested around Rs 10,979 crore in 577 MSMEs as of March 2025 since its launch. 

About Self Reliant India (SRI) Fund

The Ministry of Micro, Small and Medium Enterprises launched the Self Reliant India (SRI) Fund in 2020 to boost the growth of MSMEs.

It aims to inject Rs 50,000 crore into MSMEs that show potential to expand and become large businesses. As of March 2025, the SRI Fund has invested Rs 10,979 crore in 577 MSMEs.

It provides equity funding to businesses in exchange for a share of ownership, unlike loans that need repayment with interest.

Scheme Structure

Government Component => ₹10,000 crores allocated from government funds, representing 20% of the total scheme size. This demonstrates the government's commitment to directly supporting MSME growth through equity participation.

Private Sector Component => ₹40,000 crores through private equity and venture capital funds, representing 80% of the scheme. This structure leverages private sector expertise and capital for MSME development.

How does the SRI Fund Work?

The fund operates through a mother-fund and daughter-fund structure. The SRI Fund acts as the mother fund. It channels money to 60 empanelled daughter funds (smaller SEBI-registered funds) that directly invest in MSMEs through equity, quasi-equity (a mix of equity and debt), or debt. This structure ensures that funds reach businesses efficiently and support their growth.

Which States Are Benefiting?

The SRI Fund’s investments are spread across India, with some states leading the way:

• Karnataka tops the list with 151 MSMEs receiving funds.
• Maharashtra follows closely with 144 MSMEs.
• Delhi has 69 MSMEs.
• Haryana supports 49 MSMEs.
• Telangana aids 39 MSMEs.

Regulatory Framework

The SRI Fund is registered as an Alternative Investment Fund (AIF) with SEBI, operating through a sophisticated mother-fund and daughter-fund structure. This ensures:

• Regulatory compliance and transparency
• Professional fund management practices
• Risk diversification through multiple daughter funds
• Specialized sector expertise through different fund managers

Recent Policy Updates

Expanded MSME Definition (2025 Budget)

This expansion significantly broadens the MSME ecosystem, bringing more enterprises under various government schemes including the credit guarantee programme.

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MSME SECTOR 

Source: 

FINANCIAL EXPRESS